As an entrepreneur, you probably dream of an efficient business with continuous profits. And, of course, you want to have a dream team on board that will help your company reach its full potential. These are big goals that are tough, but not impossible, to achieve.
And while big-picture goals may seem hard to reach, it’s the lack of a clear plan that can interfere with success for so many business owners.
So what’s the key to success? The key to victory may be in creating clear business objectives that you can reach in a short amount of time. One type of business objective to implement is called an operational objective. In this article, we’ll outline a few examples of these important objectives.
What Are Operational Goals?
While different industries have their own nuances, the consensus is that business operations mean taking your workforce or raw supplies and turning them into a profit. The aim is to do this in the most efficient manner possible.
Any business owner knows that it’s the main goal of the business to make money. And, businesses should strive for a positive customer experience. But, these are vague, broad goals.
Operational goals, also known as operational objectives or tactical objectives, help turn your vision into a reality. Creating operational goals involves breaking down your bigger goal into a smaller action that’s required.
Operational goals are a way of showing how success will be measured. They also feature attainable targets in a relatively short time frame so their progress can be evaluated.
It should be noted that while the impacts of your work may be far-reaching, an operational objective should be created for a single department to act on. For example, the objective might be created for the Sales Department or the Marketing Department.
Here are some examples of operational business goals. Consider if these are appropriate for your business.
When costs are high and cash flow is low, reducing costs makes sense. Within this goal, it’s important to set clear expectations for how the cost-cutting will be executed. Department leaders should be given clear data on what their budget is so they can implement the changes. If a leader is responsible for reducing costs, there should be a clear budget so he or she can successfully work with these changes. And, attaching deadlines for implementing changes is vital. Deadlines are crucial so that progress can be monitored.
Improve Customer Satisfaction
Improving the customer experience can be an ongoing goal for your organization. However, this operational goal can have some deadlines attached to it by acquiring data. Your first objective might be to acquire some data by finding out how customers feel about your brand. Customer surveys can shed a lot of light. Tracking what people are saying about your company on social media and other websites can also be very telling. Setting deadlines for improving trouble spots for your company can also be a worthwhile operational objective.
Customer retention can be a make-or-break issue for new businesses. If you’ve launched a food or beverage business, you’ll want to get the inside scoop on how to make your service sweet. Check out our tips for customer retention in the restaurant industry.
An example of a specific goal in inventory management might be to reduce excess stock and improve turnover rates within 12 months. To achieve this, a company could implement a just-in-time (JIT) inventory system. This is when materials and products are only ordered and received as needed for production or sales. Doing things this way helps minimize holding costs and reduces the risk of overstocking.
A company could also invest in inventory management software to track stock levels accurately to help them reach this goal. The goal might include specific targets, such as reducing inventory holding costs by 15% and increasing inventory turnover from 4 to 6 times per year. Regular reviews and adjustments would be essential to adapt to market changes and maintain optimal stock levels. Achieving this goal would lead to reduced waste, improved cash flow, and better responsiveness to customer needs.
Decrease Workplace Safety Accidents
Establishing a safe work environment is vital to any business. Workplace accidents are not only physically harmful but also damaging to morale. Prevention is key. Communicating workplace safety standards is vital. Ensuring that all staff are trained to work safely is the first step. Deadlines should be attached to these training sessions. Documenting and reporting accidents that do occur should be required, so that if there are lessons to be learned, this information can be gathered. This ensures continuing to promote a culture of safety.
Reducing Response Time
These days, people don’t like to wait. Whether clients are waiting by phone, by email, or another method, how long do your clients have to wait to hear from your company? Measure the average amount of time that clients wait, and take steps to reduce it, if possible.
Wise business owners will take heed to save their customers’ time, but it’s also important to save the company’s materials. A good operational objective is to look for materials of any kind within the company and see if there is a waste of any kind. For example, is too much paper being used when an electronic version might do? Is there a flaw on the production line that is causing materials to be wasted when they should not be? Look for ways to minimize waste, and it will boost your bottom line.
Progressing towards profits requires careful planning. Every business is unique, as are its needs. And, having unique business goals that match the business can help propel it past the competition. Creating operational objectives that are tailored to your business will ensure that your actions fit the needs of your journey.